A new flurry of takeover rumors has dramatically boosted the share price of Continental Gold (VSE), a Vancouver- based junior which owns 70% of the advanced Mt. Milligan gold- copper project, north of Prince George, B.C. A total of 1.5 million shares are reported to have traded on NASDAQ and on the Vancouver Stock Exchange during the past month. At presstime, the issue reached a new high of $14.75, up considerably from its 1990 low of $6.87.
President Robert Dickinson said the company has not received any recent formal offers for its shares, nor was the company aware of any particular party intending to do so.
“We are always the last ones to hear about these things,” he told The Northern Miner.
Hemlo Gold Mines (TSE) announced in its 1989 annual report that it had acquired just over 4% of the stock of Continental through purchases on the open market. Rio Algom (TSE) also has an equity position of about 8.8% in Continental.
News that Hemlo Gold has acquired a small interest in Continental did not come as a surprise as that company, or its parent Noranda (TSE), was widely rumored to have been a possible takeover contender before the Mt. Milligan project became the subject of a lawsuit.
A unit of BP Resources (TSE), Continental’s joint venture partner at Mt. Milligan, filed legal action against Continental claiming the right to a greater interest in the property. One examination of discovery has been heard, several more are slated for mid-April, and the lawsuit will be heard Nov. 5.
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